Question 9
One year ago, XYZ Co. issued 16-year bonds at par. The bondshave a coupon rate of 6.49 percent, paid semiannually, and a facevalue of $1,000. Today, the market yield on these bonds is 6.85percent. What is the percentage change in the bond price over thepast year? Answer to two decimals
Question 10
Suppose ABC Co. issues $18.37 million of 17 year zero couponbonds today. If investors require a return of 6.18 percentcompounded semiannually and all the bonds remain outstanding untilthey mature, how much (in $ millions) will ABC have to pay toredeem the bonds. Answer in millions to two decimals - ie, if youget $50,268,382, you should enter 50.27.
